Public Meeting to Consider an Informational Report
on the Children's Health Study

SUMMARY OF AGENDA ITEM:

Staff provided the Air Resources Board with an
update on the Children's Health Study which ARB has
been sponsoring since 1991. The project is a
10-year study, being conducted by the University of
Southern California, examining the effects on
children's respiratory health of long-term exposure
to criteria air pollutants. The pollutants of
interest include ozone, nitrogen dioxide,
particulate matter less than 10 microns in diameter
(PM10), gaseous acids (nitric and hydrochloric) and
fine fraction particulate matter (PM2.5) mass and
chemistry. Over the course of the study, nearly
5,000 children from 12 southern California
communities will be followed through their high
school graduation. During the presentation, staff
reviewed the study design and reported on the major
accomplishments achieved to date, the status of the
contract, the project budget, and early results
from this research effort.

ORAL TESTIMONY: None

FORMAL BOARD ACTION: None

RESPONSIBLE DIVISION: RD

STAFF REPORT: No

98-7-2

Public Meeting to Consider an Informational Report
on the Innovative Clean Air Technology (ICAT)
Program

SUMMARY OF AGENDA ITEM:

Staff presented an update on the ICAT program. The
update included a brief description of the program,
and a brief status report on the staff's outreach
efforts. Staff then introduced three guest
speakers who discussed their respective ICAT
projects.

Charlie Carlisle, CHA Corporation, discussed the
development of the CHA process, a process designed
to reduce nitrogen oxides (NOx) and volatile
organic compound emissions from small stationary
diesel engines. After recently completing their
project with a demonstration of their technology at
McClellan Air Force Base in Sacramento, CHA is
beginning the commercialization phase.

Scott Drennan, Coen Company, provided an overview
of their ultra-low NOx, gas-fired burner that
addresses the large market sector of industrial
burners in California. Coen is beginning their
project demonstration phase at a State-operated
heating and cooling plant located in downtown
Sacramento.

Eddie Huang, AeroVironment Environmental Services,
discussed their successful commercialization of a
metal coating with zero volatile organic compounds
and zero hazardous air pollutants. After recently
completing their ICAT project, they are now poised
to make a significant impact in the U.S. and global
paint and coating market.

ORAL TESTIMONY: None

FORMAL BOARD ACTION: None

RESPONSIBLE DIVISION: RD

STAFF REPORT: No

98-7-3

Consideration of Research Proposals:
The Board approved Resolutions 98-29, 98-30, and
98-31 by unanimous approval.

98-7-4

Public Meeting on Proposed Addendum to the Air
Resources Board's 1995 Criteria and Guidelines for
the Use of Motor Vehicle Registration Fees

SUMMARY OF AGENDA ITEM:

Staff presented an Addendum to the 1995 Criteria
and Guidelines for the Use of Motor Vehicle
Registration Fees. The 1995 criteria emphasize
cost-effectiveness, implementing air district clean
air plans, leveraging other funds, and advancing
new technologies. The Addendum was prepared in
response to the Board's direction in October 1997.
At that time, the Board felt that additional
guidance would help to increase emphasis on cost-
effectiveness and thereby increase emission
reductions from the Motor Vehicle Fee Program. The
Addendum makes no changes to the fundamental
criteria adopted in 1995, but does clarify how to
implement the criteria.

The Addendum was prepared in cooperation with a
statewide technical working group of
representatives of recipient agencies. It
acknowledges the link between leveraging and cost-
effectiveness, encourages financial incentives for
fleet conversions by local governments, provides
for accountability through public consideration of
local decision-making criteria, and provides
examples on how to design projects for $20,000 per
ton or less. An appendix includes examples of
projects that have been successfully demonstrated.
These include technology-based, as well as trip
reduction, projects.

Follow-up tasks for staff include holding
technology-based, "good projects" forums in the
South Coast; working with CAPCOA to expand the list
of example projects; refining analysis tools for
recipient agencies; maintaining a clearinghouse of
well-designed projects; and convening a working
group of South Coast cities, counties and the air
district to assume responsibility for an annual
"good projects" conference.

A representative from Project Clean Air testified
regarding the importance of training and public
education in the design of alternative fuel cleaner
vehicle projects. In response to this testimony,
staff will add language to the Addendum
underscoring the importance of training to the
success of alternative fueled cleaner vehicle
projects and that such training can be funded with
Motor Vehicle Registration Fees. Staff from the
South Coast Air Quality Management District offered
support for the Addendum and requested continued
technical assistance to local governments.

ORAL TESTIMONY:

Linda Urata
Project Clean Air

Oscar Abarca
South Coast AQMD

FORMAL BOARD ACTION:

Approved Resolution 98-32 by a unanimous vote.

RESPONSIBLE DIVISION: OAQTP

STAFF REPORT: Yes (53 pages)

98-7-5

Public Meeting to Consider an Update on the New
Federal Standards, Regional Haze, and Particulate
Matter Forums

SUMMARY OF AGENDA ITEM:

The staff presented an update on the implementation
of the new federal standards for ozone and fine
particulate matter (PM2.5), as well as the status
of proposed federal visibility regulations.
California has advocated the need to consider
technical feasibility and cost-effectiveness in the
implementation of the new standards and the
visibility regulations. Although U.S. EPA and
Congress have addressed some of the most critical
implementation issues, others remain. The ARB
staff is continuing to monitor emerging policies to
ensure the State's ability to pursue effective air
quality programs.

The staff also discussed activities which will
improve our technical tools to address the new
standards, including ongoing studies. The staff
summarized the 10 public forums held in
collaboration with local districts to educate
participants about particle pollution and solicit
input on planned technical work. In those forums,
three consistent themes emerged statewide:
questions and concerns about the health impacts of
particle pollution; prescribed fire; and the need
for mobile source controls, especially diesel
engine controls. The input from the forums will be
incorporated into a technical workplan, which will
lay out the scope and schedule for future
particulate matter technical work. A draft
workplan will be available later this year.

The State's existing ozone plan will form the basis
for meeting the new ozone standard as well as the
PM2.5 standards. Because ozone and particulate
matter share common chemical precursors such as NOx
and organic gases, California's existing ozone
programs will also reduce fine particulate levels
and improve visibility. Although the South Coast
and the San Joaquin Valley will violate the new
federal PM2.5 standard, other urban areas may be
able to avoid federal planning requirements with
the help of additional emission reductions from
upcoming mobile source regulations, incentive
programs, and improved smoke management plans.

ORAL TESTIMONY: None

FORMAL BOARD ACTION: None

RESPONSIBLE DIVISION: OAQTP

STAFF REPORT: No

98-7-6

Public Meeting to Consider a Status Report on Air
Pollution Control Enforcement in California

Public Meeting to Consider a Report to the
Legislature Regarding the Application of Penalties
for Violations of Motor Vehicle Fuels Regulations

At the Board meeting, the Board approved the Report
of the Air Resources Board to the Assembly
Committee on Natural Resources, the Assembly
Committee on Transportation, the Senate Committee
on Criminal Procedure, and the Senate Committee on
Transportation, on Violations of State's Clean
Fuels Laws.

The report was mandated by Senate Bill 163 (SB 163,
Johannassen, stats. 1995, c. 966). SB 163 changed
the way penalties are calculated for violations of
the state's clean fuels requirements. Before
SB 163, the law offered little guidance on the
factors to be considered in calculating these
penalties. SB 163 required that a variety of
factors, including the violator's mental state, the
number of days over which the violation extends,
and the environmental impact of the violation be
considered when penalties are formulated. The
report evaluates how the new penalty regime
operates in practice, and concludes that SB 163 is
accomplishing the goals the Legislature had in mind
when the bill was enacted. SB 163 was enacted with
a January 1, 1999 sunset date. AB 1944 (Runner)
currently under consideration in the Legislature
would extend SB 163's sunset date and the
committees evaluating AB 1944 will use this report
in their deliberations.

ORAL TESTIMONY: None

FORMAL BOARD ACTION:

Approved the report by a unanimous vote.

RESPONSIBLE DIVISION: Office of Legal Affairs

STAFF REPORT: No

98-6-1

Continuation of a Public Hearing to Consider the
Appeals of the City of Los Angeles from Order Nos.
041697-05 and 070297-04 of the Great Basin Unified
Air Pollution Control District

SUMMARY OF AGENDA ITEM:

This item was a continuation of two appeals
considered by the Board at its May 22, 1998 public
hearing. The appeals were filed by the City of Los
Angeles (City) from two orders issued by the Great
Basin Unified Air Pollution Control District
(District). Order No. 041697-05 (the fee order)
requires the City to pay fees of $1,482,485 to the
District, and Order No. 070297-04 (the control
measures order) requires the City to implement
certain PM-10 control measures on the dry bed of
Owens Lake. The control measures consist of a
combination of shallow flooding, managed
vegetation, and gravel covering.

Both orders were adopted by the District pursuant
to Health and Safety Code section 42316(a), which
provides that the District may require the City to
undertake reasonable measures, including studies,
to mitigate the air quality impacts of its
activities in the production, diversion, storage
and conveyance of water in the Owens Valley area.
Section 42316(a) also provides that the District
may require the City to pay, on an annual basis,
reasonable fees, based on an estimate of the actual
costs to the District of its activities associated
with the development of the mitigation measures and
related air quality analysis with respect to those
activities of the City. Finally, section 42316(b)
allows the City to appeal any measures or fees
imposed by the District to the Air Resources Board
(ARB or Board). The ARB is then required, on at
least 30 days notice, to conduct an independent
hearing on the validity of the measures or
reasonableness of the fees which are the subject of
the appeal.

The City appealed both the fee order and control
measures order to the ARB. The two appeals were
initially heard by the Board at its May 22, 1998
public hearing. At this hearing, the Board voted
to deny the City's appeal of the fee order. With
respect to the City's appeal of the control
measures order, the Board voted to continue the
matter for one month until the June 25, 1998 public
hearing. The Board also encouraged the parties to
use this time to reach a mutually acceptable
settlement of the outstanding issues.

At the June 25, 1998 public hearing, the Board
adopted a written Decision and Findings document to
finalize the Board's May 22 decision regarding the
fee order. With respect to the control measures
order, the City and the District requested the
Board to further continue the matter until the
Board's July hearing, in order to give the parties
additional time to finalize a settlement agreement.
The Board responded to this request by further
continuing the control measure appeal until the
Board's July 30-31 public hearing. In addition, the
Board directed the Executive Officer to delay
serving on the parties until no earlier than
July 30, 1998*, the Decision and Findings document
for the fee order. This delay is also intended to
give the parties additional time to conclude
settlement negotiations.

ORAL TESTIMONY:

S. David Freeman
L.A. Department of Water and Power

Ellen Hardebeck
Great Basin Unified APCD

FORMAL BOARD ACTION:

The Board continued the appeal of the control
measure order until the Board's July 30-31 public
hearing. The Board also adopted a written Decision
and Findings document to finalize the Board's
May 22 decision regarding the fee order, and
directed the Executive Officer to delay serving
this document on the parties until no earlier than
July 31, 1998.